When your initial mortgage deal comes to an end, your lender may offer you a new rate to stay with them. This is known as a product transfer.
It can be a simple option, especially if you’re happy with your lender and want to avoid a full mortgage application. But it’s not the only option available, and it may not be the most competitive.
We regularly help customers decide between staying with their current lender or remortgaging to a new one. Each option has its pros and cons, depending on your situation.
What is a product transfer?
A product transfer involves switching to a new mortgage deal with your current lender, without changing provider.
It usually happens near the end of your fixed-rate period, when your deal is about to revert to the lender’s standard variable rate (SVR).
Product transfers often don’t require a full affordability check or property valuation, which can make the process quicker and more straightforward.
That said, the deal you’re offered may not be the most suitable one on the market.
Lenders rarely offer loyalty rewards for staying with them, and in some cases, they offer better rates to new customers than existing ones.
What is a Remortgage?
Remortgaging means switching your mortgage to a new lender, often to access a lower rate, raise additional funds, or change the type of product you’re on.
This involves a new mortgage application, which may include affordability checks, property valuation, and legal work.
Remortgaging can open up a wider choice of products, and in many cases, the deals available through other lenders are more competitive than those offered through a product transfer.
Is a product transfer always the easier option?
On the surface, product transfers can seem like the easiest choice, particularly when lenders allow you to switch online in just a few clicks.
But it’s important to know that many lenders won’t give you advice as part of this process.
Without mortgage advice, you won’t benefit from the same consumer protection if the deal turns out to be unsuitable later on.
We’ve seen cases where customers have chosen a follow-on deal without advice and later needed to make changes, such as borrowing more.
In some situations, that has meant paying early repayment charges to exit the deal they selected, charges that could have been avoided with the right advice upfront.
Thinking of Switching? Speak to a Mortgage Advisor in Manchester
Whether you’re coming to the end of your fixed rate or just reviewing your options, our mortgage advisors in Manchester are here to help.
We’ll review your current mortgage, explain the pros and cons of staying with your lender or switching elsewhere, and support you through the next steps.
If your situation is straightforward, we’ll make the process as efficient as possible.
If your circumstances have changed since your original mortgage, we’ll help you navigate the options with confidence.
Date Last Edited: August 1, 2025
